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New employment compensation limits

From the beginning of February, the limits for certain employment tribunal awards and other payments governed by employment legislation will be increased.

As a result, when an event resulting in compensation or payment occurs on or after 1st February, the:

  • Pay cap for calculating statutory redundancy payments and the basic award for unfair dismissal will be £450 a week
  • Maximum compensatory award for unfair dismissal will be £74,200
  • Maximum guarantee pay per day will be £24.20
  • Minimum basic award for unfair dismissal due to health and safety, employee representative, trade union or occupational pension trustee reasons will be £5,500

If the event occurs before the beginning of February, the old rates will apply, even if the compensation is awarded after the new limits have come into force.